What is the speediest method to stop foreclosure? Naturally, that would be to pay off the loan, but if you were readily able to do that you wouldn’t be in foreclosure. It’s not all bad news however. There are still ways that you can stop foreclosure fast. Keep reading to learn about common ways to stop foreclosure fast.

Refinance And Payoff the Loan

A refinance to prevent foreclosure only works in some in some situations. If you have ample equity in your home and a steady income, you may be a perfect candidate for a refinance payoff. This is when a bank finances a new loan, supplying the money to pay off the initial mortgage plus any fees and penalties. By paying off the mortgage, you avoid foreclosure. If you have an ARM loan that has recently gone up, you might be the perfect candidate for a refinance loan as well.

Bankruptcy Filing

Filing for bankruptcy to halt foreclosure quickly is a drastic measure and unless you have other financial reasons for the bankruptcy, it usually is not the ideal choice. Bankruptcy has many negative consequences and can cause even worse damage to your credit. It is true that bankruptcy will temporarily halt a foreclosure, however that only delays the foreclosure process until a judge says that it can proceed.

Using Short Sales

A short sale is when you make arrangements with the bank that allows you to sell the home for less than you owe and have that considered as satisfaction of the loan. If you are considering a short sale, you must have all of your figures in front of you and call your lender with the precise details to find out if they would take a short sale in your case. You should know that there may be IRS implications to a short sale.

The Deed in Lieu of Foreclosure Option

You can offer the bank something called a “Deed in Lieu of Foreclosure” on your property. This is giving the home back to the bank to prevent the foreclosure process. By handing over the home, you can try and avoid the stress of the actual foreclosure and the further damage to your credit. This can be a good option if you think that you can not afford the home and are out of time to opt for other choices.

While these ideas may stop foreclosure, avoiding it from happening at all is the best choice. By acting quickly at the first signs of trouble, you can avoid foreclosure. When you are facing foreclosure, the more time you have, the more choices you have and the better the final outcome.